NECA DG Attributes Economic Hardships to Inflation Impact on Nigerian Workers

In a recent statement, Mr. Adewale Oyerinde, the Director-General of the Nigeria Employers’ Consultative Association (NECA), emphasized that the escalating rate of inflation in Nigeria is a key factor contributing to the economic hardships faced by the average Nigerian worker. Here are the key points from his remarks:

• Inflation’s Grip on Disposable Income: Oyerinde highlighted the pervasive impact of inflation on the disposable income of the average worker, stressing that the continuous surge in prices is diminishing the real value of wages. This, in turn, significantly reduces the purchasing power of individuals who are already grappling with the rising cost of living.
• Strain on Businesses: The Director-General pointed out that the economic challenges extend beyond individual workers to businesses, hindering their ability to make positive contributions to the economic ecosystem. The strain on businesses further exacerbates the difficulties faced by the workforce.
• Urgent Need for Multifaceted Approach: Oyerinde called for a comprehensive approach to address the complex economic challenges. He emphasized the importance of not only implementing sound monetary policies to tackle inflation but also fostering a business environment that prioritizes the well-being of workers and meets broader societal obligations.
• Record-High Inflation: According to the National Bureau of Statistics, Nigeria’s inflation surged to a 27-year high of 28.92% in December, up from 28.20% in the previous month. This alarming increase underscores the severity of the economic situation.
• Challenges in Labor Agitations: While acknowledging the legitimacy of labor demands for wage increases, Oyerinde expressed concern about the manner in which these agitations are pursued. He highlighted the unique challenges faced by the private sector, where employees typically receive their pay on a monthly basis, unlike civil servants who may receive government support during challenging times.
• Call for Government Support: Oyerinde called on the government to recognize the distinct challenges faced by the private sector and provide necessary support. He stressed the need for collaborative efforts to navigate the economic difficulties caused by inflation and ensure the well-being of both businesses and workers